People — OCR GCSE Business
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People explained
The 'People' topic explores the purpose and role of human resources within a business, covering organisational structures, communication, recruitment, selection, motivation, retention, training, development, and employment law.
What to demonstrate
- Demonstrate knowledge and understanding of HR concepts (AO1)
- Apply HR concepts to specific business contexts (AO2)
- Analyse and evaluate HR issues to make judgements and draw conclusions (AO3)
Show all 5 objectives
- Use of business terminology to identify and explain HR activity
- Justified decision making using qualitative and quantitative data
People exam tips
Topic Overview
The 'People' topic in OCR GCSE Business explores how businesses manage their workforce to achieve objectives. It covers recruitment, training, motivation, and employment law, showing how effective human resource management drives productivity and success. Understanding this topic is crucial because people are a business's most valuable asset, and getting HR wrong can lead to high staff turnover, low morale, and legal issues.
This topic fits into the wider subject by linking to operations (how staff produce goods/services), finance (labour costs), and marketing (customer service quality). You'll learn about different organisational structures, leadership styles, and motivation theories like Maslow and Taylor. The content is assessed in both Paper 1 and Paper 2, often through case studies where you apply concepts to real business scenarios.
Mastering 'People' helps you see business as a human system, not just numbers. You'll understand why employees need clear contracts, fair pay, and development opportunities. This knowledge is also useful for your own career planning and for evaluating business decisions critically.
Key Concepts
- →Recruitment and selection: The process of attracting and choosing the right candidates, including internal vs external recruitment, job descriptions, person specifications, and interview methods.
- →Motivation theories: Maslow's hierarchy of needs (physiological, safety, social, esteem, self-actualisation) and Taylor's scientific management (financial incentives). Understand how businesses apply these through job enrichment, bonuses, and fringe benefits.
- →Organisational structure: Hierarchical vs flat structures, span of control, chain of command, and delegation. Know the advantages and disadvantages of each for communication and decision-making.
- →Employment law: Key legislation like the Equality Act 2010 (discrimination), National Minimum Wage Act, and Working Time Regulations (holidays, breaks). Businesses must comply to avoid tribunals and fines.
- →Training and development: On-the-job (coaching, job rotation) vs off-the-job (courses, apprenticeships). Training improves productivity, quality, and employee retention.
Marking Points
- Demonstrate knowledge and understanding of HR concepts (AO1)
- Apply HR concepts to specific business contexts (AO2)
- Analyse and evaluate HR issues to make judgements and draw conclusions (AO3)
- Use of business terminology to identify and explain HR activity
- Justified decision making using qualitative and quantitative data
Examiner Tips
- 💡Use the command words to determine the level of skill required (e.g., 'Identify' for knowledge, 'Evaluate' for sustained reasoning)
- 💡Ensure answers are structured and well-evidenced
- 💡Practice applying quantitative skills within the context of HR scenarios
- 💡Use the stimulus material provided to ground your answers in real business contexts
- 💡Use real business examples to support your answers. For instance, mention how Google uses job enrichment (20% time) or how McDonald's motivates staff with bonuses. This shows application, which scores high marks.
- 💡When evaluating, consider both sides. For example, 'Piece-rate pay may increase output but could reduce quality if workers rush.' Always link back to the business's objectives (profit, growth, reputation).
- 💡Learn the key terms precisely: 'span of control' is the number of subordinates a manager directly supervises; 'chain of command' is the line of authority. Mixing them up loses easy marks.
Common Mistakes
- Failing to apply knowledge to the specific business context provided in the stimulus
- Confusing different organisational structures (tall vs flat)
- Lack of logical chains of reasoning in extended responses
- Failure to weigh up both sides of an argument in evaluation questions
- Misconception: Motivation is only about money. Correction: While pay matters, theories like Maslow show that recognition, job security, and personal growth are equally important. Many employees leave due to poor management, not low pay.
- Misconception: A tall hierarchy always means better control. Correction: Tall structures can slow communication and decision-making. A flat structure may be better for small businesses or creative industries where quick responses are needed.
- Misconception: Employment law only protects employees. Correction: It also protects employers by setting clear rules. For example, contracts prevent disputes, and following the Equality Act avoids costly discrimination claims.
Frequently Asked Questions
What is the difference between a job description and a person specification?
A job description outlines the duties, responsibilities, and conditions of a role (e.g., 'manage social media accounts'). A person specification lists the qualifications, skills, and qualities needed (e.g., 'degree in marketing, excellent communication'). Both are used in recruitment to attract suitable candidates and filter applications.
How does Maslow's hierarchy apply to business motivation?
Maslow's theory suggests employees have five levels of needs: physiological (salary), safety (job security), social (teamwork), esteem (recognition), and self-actualisation (personal growth). Businesses can motivate by meeting these needs, e.g., offering fair pay, permanent contracts, team-building activities, awards, and training opportunities. However, the theory is criticised for assuming everyone has the same priorities.
What are the advantages of internal recruitment?
Internal recruitment (hiring existing employees) is cheaper and faster than external advertising. It boosts morale as staff see promotion opportunities, and the candidate already knows the business culture. However, it limits the pool of new ideas and may cause resentment if someone is overlooked.
Why is the Equality Act 2010 important for businesses?
The Equality Act 2010 protects employees from discrimination based on age, disability, gender, race, religion, sexual orientation, and more. Businesses must ensure fair recruitment, pay, and promotion. Non-compliance can lead to employment tribunals, compensation payouts, and reputational damage. It also promotes a diverse workforce, which can improve creativity and customer understanding.
What is the difference between on-the-job and off-the-job training?
On-the-job training occurs at the workplace, e.g., shadowing a colleague or coaching. It's cost-effective and relevant but can be disruptive. Off-the-job training takes place away from work, e.g., college courses or online modules. It provides expert knowledge but is more expensive and requires time away from work. Businesses often use a mix of both.
How does a flat organisational structure affect communication?
A flat structure has few layers of management, so communication is faster and more direct. Employees have greater responsibility and may feel more motivated. However, managers can have a wide span of control, leading to overload and less supervision. This structure suits small businesses or creative firms where quick decisions are needed.